Uninsured Vehicles Are Now Insured Too!

Summary

As of 19^th September 2023, with an amendment to the Regulation on the Application Principles of Tariffs in Compulsory Financial Liability Insurance for Motor Vehicles, damages to third parties caused by vehicles that pose a risk higher than reasonable level may be shared among member insurance companies of the Risky Insurances Pool under certain conditions even if the vehicle in question has no compulsory financial liability insurance at the time of loss.

Introduction

Liability insurance for motor vehicles ("CTI") is a mandatory insurance required by the Highway Traffic Law (No. 2918). This requirement concerns both vehicle operators and insurance companies. The Insurance Law (No. 5684) regulates that insurance companies cannot refuse to provide insurance coverage to individuals who apply for such mandatory insurance.